Turn Debt into Wealth: The Untapped Potential of Note Investing | Nathan Turner

Turn Debt into Wealth: The Untapped Potential of Note Investing | Nathan Turner

Note Investing: The Hidden Goldmine for Smart Investors

Are you searching for a stable, hands-off investment strategy that goes beyond the stock market and traditional real estate? In this episode of the Marketing Boost Solutions Podcast, we dive deep into the world of note investing with Nathan Turner, widely known as The Canadian Note Guy.

As the founder of Earnest Investing and the visionary behind the Diversified Mortgage Expo, Nathan brings over 15 years of experience in turning mortgage notes into consistent, passive cash flow—and he’s helping everyday investors do the same.

This recap distills the most valuable insights and action steps from our conversation, giving you a clear roadmap to understand how note investing works, why it’s growing in popularity, and how it can create both wealth and impact. Whether you’re seeking passive income, portfolio diversification, or a way to invest with purpose, this guide will help you unlock a smarter path to financial freedom.

🔍 What Is Note Investing?

Note investing means buying mortgage notes—loans secured by real estate—from banks or lenders. When you purchase a note, you essentially step into the lender’s shoes and collect the borrower’s payments.

In simple terms: instead of paying a mortgage, you own the mortgage.

Key Concepts:

• Performing Note: The borrower is making payments as agreed.

• Non-Performing Note: Payments have stopped, creating opportunities to negotiate or restructure.

How It Works:
Banks sell mortgage notes at a discount to free up capital. Investors buy these notes, collect payments, and earn returns from the difference between the purchase price and total repayment.

Nathan discovered this opportunity after creating his own notes through seller financing—then realized the massive potential in buying existing notes, especially in the U.S. market.

💰 Why Consider Note Investing?

1. Consistent, Hands-Off Cash Flow
Note investing offers steady, predictable payments—often without the headaches of tenants or property maintenance.

2. Portfolio Diversification
Real estate-backed notes are less tied to market volatility, helping balance your investment portfolio.

3. Real Social Impact
Investors can creatively work with borrowers to avoid foreclosure, keeping families in their homes while still earning strong returns.

4. Attractive Yields
Buying notes at a discount creates built-in profit potential—returns often average 8% or higher, and seller-financed notes can yield up to 12%.

🚀 How to Get Started: Active vs. Passive Approaches

Active Note Investing: Buy and manage individual notes yourself. You control the deals, but it takes time, effort, and due diligence.

Passive Note Investing: Invest through a managed fund, like Earnest Investing, where professionals handle acquisition and management. Nathan’s fund starts at $50,000, making it an accessible entry point for serious investors.

Nathan’s best advice?

“Start with education. Learn the rules, understand your risk tolerance, and build your confidence before diving in.”

🧭 The Art of Due Diligence

Success in note investing is built on research and relationships. There’s no central database—so your network is your best resource.

Sourcing Notes:

• Attend industry events like the Diversified Mortgage Expo

• Join online investor groups and communities

• Build relationships with sellers, brokers, and other investors

Evaluating Notes:

• Review payment history, loan terms, and borrower reliability

• Confirm property value and check for existing liens

• Understand local foreclosure laws—they vary by state

Nathan typically focuses on first-lien notes on single-family homes under $250,000, offering a solid balance between return and stability.

⚖️ Managing Risk and Diversification

Like any investment, note investing carries risks—from borrower defaults to property devaluation. Nathan recommends:

• Diversifying across multiple notes

• Doing deep due diligence on every deal

• Staying flexible and working with borrowers to find win-win solutions

In Nathan’s fund, investor money is spread across many notes, reducing exposure to any single borrower or property—a key strategy for long-term consistency.

❤️ The Human Side of Note Investing

This isn’t just about profits—it’s about people.

Nathan shares powerful stories of helping borrowers rebuild stability and stay in their homes. In one case, he financed a new furnace for a struggling homeowner; in another, he accepted a deed-in-lieu to clear a borrower’s debt and give her a fresh start.

“When you can help someone stay in their home and still make a great return, that’s the ultimate win-win,” Nathan says.

🧠 Expert Tips for Success

1. Invest in Education First – Attend events, read books like Nathan’s upcoming Passive Security Unique, and learn from experienced mentors.

2. Start Small, Scale Smart – Gain experience before increasing your investment size.

3. Network Relentlessly – Relationships drive this business.

4. Do Your Homework – Never skip due diligence.

5. Think Long-Term – Patience and compounding are key.

6. Stay Flexible – Creativity often turns potential losses into success stories.

🌟 Final Thoughts

Note investing isn’t about chasing quick wins, it’s about creating lasting, stable wealth while helping others in the process. Nathan Turner’s journey proves that with education, strategy, and the right mindset, you can build both income and impact.

Don’t wait for the perfect time—start learning, start connecting, and start investing in your financial freedom today. Because when you own the debt, you own the freedom.

🎧 Listen to the full episode now on the Marketing Boost Solutions Podcast.

🔗 Connect with Nathan below:

Website: https://earnestinvesting.com/

LinkedIn: http://www.linkedin.com/in/nathan-turner-a9a1b510
Facebook: https://www.facebook.com/nathan.turner.35110